Connecticut lawmakers are reviewing a proposal that would allow some cannabis business owners to sell their companies sooner than current regulations permit. The proposed legislation, known as House Bill 7178, aims to modify the existing rules for equity joint ventures. These ventures are partnerships formed between financially established cannabis operators and social equity applicants, who are individuals from communities disproportionately affected by the war on drugs.
According to state records, at least 38 cannabis businesses have been established through these equity joint ventures in recent years. However, some social equity applicants involved in these partnerships are now advocating for the right to sell their ownership stakes after just three years. Currently, state law mandates that these applicants must wait seven years before they can sell their interests in cannabis businesses.
State officials are expressing concern over how such a change might impact Connecticut’s growing marijuana industry. They worry that allowing earlier sales could disrupt the stability of this emerging market, which is still in its developmental stages. The debate continues as lawmakers weigh the interests of equity applicants against the potential risks to the industry.
